Australia's share market had a downbeat day as spikes in bond yields prompted investors to sell equities, while Brisbane's growing coronavirus outbreak hit Easter travel plans.
The S&P/ASX200 benchmark index closed down 61.1 points, or 0.9 per cent, to 6738.4 on Tuesday.
The All Ordinaries closed lower by 66.6 points, or 0.95 per cent, to 6969.8.
The indices rose early but soon moved lower, then extended losses.
The heavyweight sectors of materials and health lost 1.88 and 1.05 per cent respectively.
There were notable losses for the smaller sectors of utilities and energy, down 1.77 and 1.56 per cent.
Deep Data Analytics chief executive Mathan Somasundaram said losses were to be expected nearing the end of the financial quarter, as fund managers tried to lock in profits.
He also noted rises in US and Australian bond yields, which he said was part of the reflation trade. The Australian 10-year bond yield was 1.7 per cent.
Investors expect governments' reflationary policies, which stimulate the economy by increasing money supply, to eventually lead to inflation.
This has been particularly the case in the US, where investors expect strong economic recovery from the pandemic.
Investors have already demanded better returns in the bond market.
"If yields are higher, bonds become more attractive, which has the opposite effect on equities and other asset classes," Mr Somasundaram said.
Domestically, Queensland tourism operators' Easter trade has been hit by the unfolding virus outbreak.
Authorities reported another eight infections have emerged, totalling 15 since the initial case last week.
People in Brisbane are in their first full day of a three-day lockdown.
IG Markets analyst Kyle Rodda said while it was tempting to believe ASX losses may have been tied to the outbreak, higher yields were the cause.
Earlier, US markets closed mostly lower after concerns about a hedge fund default that roiled banking stocks.
Nomura and Credit Suisse are facing billions of dollars in losses and regulatory scrutiny after a US investment firm, named by Reuters as Archegos Capital, defaulted on equity derivative bets, putting investors on edge about who else might be exposed.
On the ASX, AGL wants to split its business in two as it comes under increasing pressure to move to clean energy.
AGL unveiled plans for a "New AGL" business focused on low carbon-emitting technologies offering consumers electricity, gas, internet and mobile services.
The other business - dubbed PrimeCo - would continue operating its coal-fired power stations to generate electricity.
Shares closed lower by 3.54 per cent to $9.81.
Santos said it would go ahead with the $US3.6 billion Barossa gas project north of Darwin.
A production and storage ship will send 3.7 million tonnes of liquefied natural gas to a plant in the Northern Territory capital.
First gas production is expected in the first half of 2025.
Shares slipped 1.11 per cent to $7.13.
In banking, the Australian Competition and Consumer Commission said it would not oppose NAB's purchase of neobank 86400.
NAB shares were down 0.84 per cent to $25.91.
ANZ gained 0.39 per cent to $28.10, the Commonwealth lost 0.2 per cent to $85.40 and Westpac climbed 0.08 per cent to $24.36.
In mining, BHP, Fortescue and Rio Tinto each lost a little more than two per cent.
On Wednesday, the Reserve Bank will issue monthly credit data and the Australian Bureau of Statistics will give building approvals figures for February.
The Australian dollar was buying 76.52 US cents at 1723 AEDT, higher from 76.21 US cents at Monday's close.
ON THE ASX
* The S&P/ASX200 benchmark index closed down 61.1 points, or 0.9 per cent, to 6738.4 on Tuesday.
* The All Ordinaries closed lower by 66.6 points, or 0.95 per cent, to 6969.8.
* At 1723 AEDT, the SPI200 futures index was higher by 12 points, or 0.18 per cent, and trading at 6722 points.
One Australian dollar buys:
* 76.52 US cents, from 76.21 cents on Monday
* 84.13 Japanese yen, from 83.51 yen
* 65.04 Euro cents, from 64.73 cents
* 55.56 British pence, from 55.41 pence
* 108.98 NZ cents, from 109.28 cents.